No, they didn't. They've actually revised their forecast of losses down since May (30%) August (26%).

TOKYO (Reuters) - Japan's Sony Corp surprised the market on Tuesday by reporting just a 1.1% profit fall for the cornonavirus-hit first quarter, as its gaming business thrived while consumers locked down at home looked for entertainment and downloaded more games. The electronics and entertainment firm posted April-June profit of 228.4 billion yen ($2.15 billion).

Sony have been re-structuring for years.

The impact of the novel coronavirus on Sony has been limited compared with Japanese electronics peers such as Panasonic Corp due to its pursuit of recurring revenue such as subscription fees on gaming content. To accelerate the portfolio shift to such revenue streams, Sony recently invested in Chinese video site Bilibili and Epic Games, creator of the popular video game Fortnite.

You have to be joking. Why would they sell off their most profitable division? Its a cornerstone for them that ties to all their other business.

They posted a $230 million profit in Movies. You can't make money if the movies aren't releasing, but you aren't spending money on marketing or development either. The pandemic will hit the movies segment hard over the next few years granted, but SPUOMC, TV shows (Amazon) and future films was looking very promising for that segment.

They really don't need to price it at $399. Each gen Sony and MS seem to swap places in completely fucking up and squandering their good will. All Sony has to do is price at $499 and keep delivering exclusives and they'll win hands down.

That would be nice. I am just very pessimistic about those things in general :)
I was happy to see the 499$ for the Series X but I was definitely expecting something at 599$ and was fine with it (I was wrong).

I think it is very obvious that we will know the price on Wednesday and hopefully, it will be around 499$ for sure (even if it is for the digital, as I do not care about the physical); if they keep it up at this price, good for all of us. And while I wanted to wait for Horizon to come out, I will probably get one up front if it is the case (I still need to play TLOU2 and finish Ghost of Tsushima, so why not doing it on the next generation).

And yah, I did not comment about the 349$ :) I think this is very bold indeed.

The trend of the market has been that the winner of the previous generation is the loser of the next. So the odds are against Sony in this regard.

Also, Sony's games are not as strong as you think they are. They sell quickly but then fall over quickly as well. Most of the came out towards the end of the system's lifespan when the install base was much larger. If you want a current example, ports of 3D Mario games have already outsold TLOU Part 2 on Amazon. Sony system's are pushed by Grand Theft Auto, sports titles and Call of Duty. Sony's first party games are mostly bought by the diehard Sony fan. Spiderman Miles Morales isn't going to light the world on fire. 

As for industry sources, we had sources say there would be a portable only Switch and WOW thats exactly what happened. Then we had sources for a smaller cheaper digital XBox and WOW thats exactly what happened. You're going to have to back up that claim they are always wrong because it seems to me the reason you think it's fake is you don't want to believe Sony is having trouble.

The difference here is the company with bad will has to make up for it at the end of the generation, as Sony did last generation--they even edged out in sales. Meanwhile, Xbox has gone this whole generation with comparitively poor sales and no true exclusives, and very few console exclusives. Not only that, but they're going into the next generation already making decisions in the same vain as this generation. What have they done to earn the trust of consumers so far? It was only a couple of short months ago that a promise of "a series of mic drop moments" or whatever cringe marketing crap they've come up with. And then Halo Infinite. The most recent announcement with the Series S isn't bad, but it honestly comes across as sort of desperate and I kind of miss actual stubstance being a selling point than feeling like I'm being bribed to buy a console.

Yeah I agree completely, MS built their strategy and studios up towards the end of the OG Xbox lifecycle, with some amazing decisions for 360 and Sonys awful PS3 start = win. Pretty much same situation for PS4/XB1 but switched.

This time MS haven't really don't anything to substantially improve, the studios they've bought aren't producing games for launch.

Xbox should do better this gen, and maybe PS5 worse, but that still works out as a huge win for Sony/PS5. MS needed to do something crazy good and Sony needed to fuck up in some way, neither have happened.

Ps5 should be cheaper with a much lower spec. It can't afford to be higher than 8ts competitors

While I disagree with Sony selling the system, it's not crazy to think Sony could be in trouble again. They had massive issues at the beginning of the Great Recession which almost bankrupted the company. He's right that movies are going to be an issue for a while. If you look at their Q1 reports, every division is down except games and financial services. 

If the PS5 doesn't do well, then it could ripple through the entire company. They wont sell of gaming as it's their best division but if it goes south, then it wipes out all their profits from the other divisions. 

On the bold: first, remember fixed cost do exist so Sony can't get out of all their cost. Second, they may have already incurred expenses already for movies that may not release for a while. This is going to hurt their cash flow and there is no telling if those movies will make back their cost. While they can change distribution, it may result in a different cost structure and that's a change that could impact Sony. 

Trend of the market?

Elaborate on your reasoning. Include the PS1 to PS2 as well, as I'm really not sure how that fits into this 'trend'. Or how a model like that would even be applicable to this gen. The reality is the odds are overwhelmingly against MS. That's not even up for dispute.

They're stronger than they have ever been in the companies history. Comparing them to evergreen Nintendo titles is pointless.

That's reductive and inaccurate. As evidence in the boost the system has received numerous times with first party releases over the course of this generation. 

His claim wasn't that they are always wrong, but almost always. Which is true. Perhaps you don't follow all the leaks from unnamed sources, there's a lot.

That's kinda like saying Nin Switch should be cheaper due to it's much lower spec. Someone would surely point out that's different because it's a different type of device that's not competing directly with SNY and MS, which has merit. So while PS5 and XB Series are basically the same type of device, both aren't competing directly anymore. Indirectly sure, but SNY is remaining on the typical path for the most part, while MS is going another direction. XBSS blurs this even more so. This overall gives SNY wiggle room to charge more than you may anticipate otherwise based on it's hardware. Not to mention everything else, especially their position and momentum in the market right now.

I partially disagree as per the higher cost. I think PS5 (disc) could actually get away with being $600 in general, though it would lose a lot of good will and the sales gap that exists now would certainly tighten, likely a significant amount over time. SNY could afford to price it higher, but they would end up putting themselves in a much less optimal position as compared to now. Matching the $500 price point may allow for small changes to the sales trend of this gen, but not enough for SNY to worry much.

Heck Apple is known for not using the most advanced hardware in their products, yet look at what they charge for them. The hardware is only a piece of the puzzle. In terms of consoles however, breaking through that $500 barrier seems to almost be an impossible task, so if SNY feels the PS5 is worth more overall, it's most likely they will just go as high as the market will allow them without losing much ground, which would be $500. They could sub and charge less than that, but they really don't need to if they don't want to.